Great insight of motives why companies should implement sustainability

Including interest from society, stakeholders influence, business advantages and the influence of climate change especially on luxury fashion.

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INTEREST FROM SOCIETY

Various studies show that there is a growing interest by stakeholders for sustainable products. Ordinary people increasingly realizing through their observations of the world - through flood, famine, disease, poverty, inequality and crime - that societies do not necessarily become happier and healthier as they get richer. The implications are profound, and progressive elements exist at every level: macro economists talk of a shift from GDP to "wellbeing"; business professionals make the "business case" for sustainability; Individuals and ashes, we strive to improve the quality of our lives, both through our careers and the products or services on which we spend our money or our time (See figure 5 below). The conscientious consumer can be an opportunity for luxury brands to redefine their business model to address problems in the area of ​​sustainability and enhance the value of their brands by better performance in terms of social affairs and the environment (Kiron et al. 2012). A future-oriented luxury brand covers various dimensions of deeper value and unites with the core business of purchasing, production, marketing and distribution. Luxury and sustainability do not need to be contradictory terms. But to ensure sustainable luxury, processes should be established techniques and materials that comply with the requirements of sustainable development (Bendell and Kleanthous 2007, p. 20). Neil Carson (2010), CEO of Johnson Matthey says, 'This is just like the quality revolution we had in the eighties. What happened was that companies either perished or were picked for quality. One day, the same goes for sustainability. "

STAKEHOLDERS INFLUENCE

Identification of stakeholders and their interest, responsibilities an accountability provides a basis for the development and implementation of appropriate policies and programmes. This framework attempts to integrate a more systematic and holistic approach in developing strategies to respond to the environmental and social aspects of sustainable development in the fashion industry and to incorporate these with financial considerations. Fashion has grown in cultural and economic significance and magnitude (Brand et al, 2006) and the industry needs to start addressing the negative aspects of the life cycle of apparel products. There is a responsibility with the producer for the product in the marketplace (Hillary, 1995) and the use of this conceptual LCA (Life cycle approach) framework by designers to address the impacts of their products. Ultimately with the widespread adoption of CSR principles, the ideals of sustainability could become another established aspect of apparel design and development in the fashion industry.

Stakeholder theory suggest that by building positive relationships with its stakeholders, companies can reap a variety of benefits (Donaldson and Preston, 1995; Ayuso et al. 2011). Particulars in the context of CSR, companies are realising that achieving environmental an social goals requires more than internal considerations and there is need to respond to the expectations of key stakeholder groups. The identification and characterisation of stakeholders varies with different circumstances (Grimble and Wellard, 1997) and stakeholders and their relative importance differ at different stages in the life cycle. How a company chooses to identify and define its stakeholders is an important aspect in responding to and managing stakeholder relationships (Grimble and Wellard 1997; Epstein 2008).

Companies can be placed in a position where they have to respond on their stakeholder. The use of boycott campaigns and protest by NGOs has been influential as companies do respond to stakeholder pressure by altering their strategies and engaging in restorative behaviours (Klein 2000; Perrini and Tencati 2006; Park Poaps 2010). The public success of such campaigns has meant that the fashion industry in its highly competitive and fragmented global marketplace has been the focus of attention by the public, consumers, media, NGO’s and governments (Park-Poaps 2010). In response, knowledge of all key stakeholders and the development of stakeholder relations beyond those necessitated by contractual and financial relationships have been recognized by many companies as a central management issue

BUSINESS ADVANTAGES

Sustainable development are increasingly seen as an additional element of distinction and prestige for luxury brands. To participate in meaningful sustainable strategies companies must reflect on their strengths and transformational potential to exert a meaningful impact. Companies recognize that sustainability is a unique opportunity to stimulate innovation, increase competitiveness and an opportunity to generate bottom-line results in a positive way (Nidumolu et al 2009;. Lubin and Esty 2010; Kiron et al 2012. ). CSR as a competitive advantage would provide new markets and business opportunities for the industry. Approximately 57% of wealthy Americans are willing to pay more for socially and environmentally responsible products (LeMonde 2010, Lochard and Murat 2011) and this trend is shared by two-thirds of the Chinese luxury consumers (Lau 2010). According to a survey of 766 United Nations Global Compact (UNGC and Accenture, 2010) says 93% of CEOs see sustainability as an important element for the future success of their business. However, to give sustainable value for both the organization and the stakeholders, it must be integrated into the way the company does business. It is important that it is implemented on as many areas such as research and development, manufacturing, design, strategy, planning, finance, accounting, marketing, communications and human resources, according to (Epstein, 2008)

INFLUENCE OF CLIMATE CHANGE ON LUXURY FASHION

Findings from a recent report by the French company Kering and British consultant Verisk Maplecroft called "Climate Change: Implications and Strategies for the Luxury Fashion Industry '' shows that climate changes particularly affect the luxury fashion industry, as it is highly dependent of natural resources quality by climate changes over time both geographically limited. These influences are seen for example in the increasing costs of certain raw materials. The report identifies six materials - beef- and calfleather, sheep- and lamb leather, silk, alpaca, cashmere and cotton. The last three are especially threatened because of the limited geographical availability and dependence on natural systems. According to the Carbon Disclosure Project (CDP) is about 50 percent of an average company's CO2 emissions arise from the supply chain. But in contrast to the luxury sector, the majority of these emissions is dedicated to the production processes in the first stages of processing of the natural raw materials.